Cost Plus, Mark Cuban’s Generic Drug Company, Continues to Transform Pricing

ark Cuban’s Cost Plus Drug Company (MCCPDC) is making a significant impact in the world of generic drugs, with a customer base of over 1.5 million and growing. The company has established itself as a major disruptor in the industry by procuring pharmaceuticals directly from manufacturers, bypassing intermediaries, and offering low prices to its customers. In the near future, MCCPDC plans to take things a step further by building a 22,000 square foot plant in Dallas, Texas, where it will manufacture its own generic drugs and possibly even biosimilars.

Last year, the company made headlines when it launched its online pharmacy, which offers a wide range of generic drugs at discounted prices. Customers can easily access the company’s transparent website, which shows the available drugs, the costs to patients, and the mark-up applied to each product. The company has partnered with TruePill Pharmacy to fill prescriptions, and charges a fixed markup of 15% on all drugs, as well as a $3 pharmacy fee and a $5 shipping fee.

Despite the success of its generic drug offerings, MCCPDC has even bigger plans for the future. The company is currently considering adding insulin to the list of drugs it sells and manufactures, with the goal of making it more affordable for those in need. Insulin can be extremely expensive, with some uninsured patients paying as much as $95 for a single vial. MCCPDC intends to sell a 90-day supply of 12 vials for $170, making it more accessible to those who rely on the life-saving medication. However, producing insulin may present challenges due to the complexity of producing biosimilars and manufacturing the drug itself. The company may choose to in-license a biosimilar version of insulin, or it may face a lengthy and costly process to produce the drug in-house.

MCCPDC is especially beneficial to those without insurance or with high deductible health plans. Co-pays for many generic drugs can be higher than the actual cost of the medication, making it difficult for some individuals to afford the necessary treatment. Currently, the company does not accept most health insurance, so insured consumers who use MCCPDC may not have their out-of-pocket costs count towards their deductible or other gaps in coverage. However, MCCPDC has recently announced partnerships with Capital Blue Cross and PBM EmsanaRX, which allow users to sign up for discounts and reduce their deductible. The company is open to partnering with other insurance companies and PBMs in the future, as it believes that transparency is a crucial aspect of the healthcare system.

As MCCPDC continues to grow and make a name for itself in the generic drug market, it is likely that the company will eventually expand its offerings to include brand-name drugs as well. In the meantime, it is clear that the company’s innovative approach to pricing and procurement is having a positive impact on the industry and on the lives of its customers.